Larry Kudlow floats a face-saving deal to combine the Paulson plan with an insurance “option” devised by Rep. Eric Cantor. A Capitol Hill staffer says: “Staff  and the 4 point guys (Frank, Dodd, Gregg, and Blunt)  are working hard at fashioning a deal. At some point, the four will approve things and then present language to their respective caucuses. People still seem to think that is likely to happen sometime tonight.” Whether the “something” is a deal, an agreement in broad terms or simply a “we’re making progress” report is unclear. Stay tuned.

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